Corporative Self-Destruction

My reflection today is on the moronic Human Resources policies of the large global corporations. I say they are idiotic because of the inherent myopia of widespread HR policies that aim at short-term savings in the value of salaries and lawful benefits awarded to their veteran employees. For several years, corporations have been employing a policy of dismissing expensive veteran employees to replace them with younger and cheaper newly graduated professionals.

The explanation offered for this self-destructive strategy is generally that the younger professional is theoretically up to date with market practices, tendencies and, though they require indoctrination and training in corporate culture, they should be just as capable as the veteran employee, who often needs theoretical recycling. This is all good and it all makes sense; at least on paper.

However, the practical reality of the matter is quite different. The CV of the newly graduated professional may reflect curricular proficiency, but the theoretical content of his/her education is no substitute for practical experience in the field. What an HR officer calls “vices” on the veteran employee, many executives call “savvy” or “wisdom”. To make matters worst, corporations are downsizing departments and handing the work volume of 2-3 veteran professionals into the care of a single novice. Downsizing and substituting an experienced veteran for a novice to save on the cost of the employee (salary + benefits) may seem smart on the short-term, but the long-term consequences are dire for corporations. Among them, we have:

1. An increase of mistakes in operations caused by the lack of practical experience and by ill dimensioned volume of work
2. An increase of operational costs caused by the above-mentioned inexperience
3. An increase of insecurity among employees, who are afraid to be laid-off at any time
4. Lack of loyalty to the corporation, as a result of the above-mentioned insecurity
5. An increase of information security problems as a result of the lack of loyalty
6. An increase of the incidence of sabotage as a result of dissatisfaction in the ranks
7. An adverse and unproductive working environment, where employees are busier tending the keeping of their position (covering-up mistakes etc.) than they are working towards corporate objectives

It is quite clear that given all of the aspects listed above, any savings conquered with the erroneous HR policies in effect today will result in palpable operational losses that will affect Marketing and Industrial costs negatively. Therefore, if there is any savings to be made in these destructive HR policies, such values will surely be supplanted by the losses incurred as a direct result of the same disastrous HR policies.

It is my opinion that, should HR departments persist is their wanton ways, they shall be responsible for a negative revolution in the way professionals deal with their employers. Better results should be obtained by providing competent professionals with security and peace of mind with which to develop their working potential, and by paying professionals what they are actually worth. It is past the time of maximisation of profits and time now for sustainable working relationships.